The MENA region has seen significant growth in the e-commerce sector. With a young population and high levels of internet penetration, particularly in the Gulf Cooperation Council, the region offers huge potential. While it had a lower-than-average
before the COVID-19 pandemic , digital savviness is expected to drive e-commerce activities in the future. Moreover, the acquisition of Souq.com by Amazon in 2017, the emergence of new platforms such as Noon, and the growth of mobile wallets, have played a pivotal role in changing perceptions of e-commerce within this region.
The MENA online shopper
In addition to high internet penetration, consumers in the region have a high smartphone penetration rate. Bahrain and the UAE were the leading countries in MENA, with a
smartphone penetration of 95 percent. Moreover, the region has high levels of time spent online. These factors contributed to the increase of online shopping frequency, as well as digital payments. In a survey, the majority of consumers reported that they prefer
digital payments for online shopping. In a region dominated by cash payments, this shift in consumer preferences provides a growing opportunity for potential players in the digital payment industry.
Shifts in consumer trends post COVID-19
While the COVID-19 pandemic has disrupted many sectors worldwide, the shift towards online has witnessed a large boost in the region. Shopping behavior has significantly changed as consumers are adapting to the new normal. More than half of consumers stated that they expect their
online shopping frequency to increase as a response to the pandemic. Consumers in the region have not only changed their shopping frequency, but which categories they purchase items from as well. They have prioritized
online shopping in categories such as grocery, food, and beverages, while products such as shoes, apparel, and accessories experienced a decrease. Many consumers are expected to maintain these shopping habits after the pandemic, which encourages businesses to adopt e-commerce solutions to improve the customer experience.
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